Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Amendment Act 2014

Overview

The Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Amendment Act 2014 was enacted by the Parliament of Australia to amend the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Act 2011. The principal objective of this amendment is to refine the levy structure that was previously known as the "Supervisory Cost Recovery Levy" and re-term it as the "Industry Contribution". The amendment also introduces changes to the calculation and imposition of the levy to align with updated financial requirements and statutory limits. This Act commenced on the day after receiving Royal Assent, specifically on 22 October 2014. The modifications outlined in the Act apply to levies payable starting from the financial year beginning on 1 July 2014.

Scope and Application

The Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Amendment Act 2014 modifies the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Act 2011. This Act applies to financial years beginning on 1 July 2014 and subsequent years, impacting leviable entities required to make payments to AUSTRAC. The amendment changes the nomenclature from "Supervisory Cost Recovery Levy" to "Industry Contribution," with the Minister authorised to determine the amount of the levy by legislative instrument, ensuring the total does not surpass the statutory limit for the financial year. The Act applies on a Commonwealth level, and while it primarily concerns financial transactions, it does not specify exclusions or thresholds beyond the statutory limit set by the Minister. The amendments are applied through subordinate legislative instruments, providing flexibility in the application and enforcement of the financial obligations imposed on the entities.

Key Provisions

The Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Amendment Act 2014 (the Act) primarily amends the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Act 2011 (2011 Act) to adjust the framework for the cost recovery mechanism for AUSTRAC. The key changes include the renaming of the "Supervisory Cost Recovery Levy" to "Industry Contribution" (section 1). Additionally, the Act modifies the definition of "census day" to shift from the 2011-12 financial year to the financial year beginning on 1 July 2014 (subsection 7(1) (paragraph (a) of the definition of census day)). Furthermore, it repeals the definitions of "indexation factor" and "index number" (subsection 7(1)), and redefines "statutory limit" to be twice the sum of all amounts appropriated by the Parliament for the purposes of AUSTRAC for the financial year (subsection 7(1) (definition of statutory limit)). Under the amended 2011 Act, the Act introduces a new section titled "Imposition of levy" (section 8), replacing the term "Supervisory Cost Recovery Levy" with "Industry Contribution". The Act also adds a new section, "Amount of levy", which stipulates that the amount of levy payable by a leviable entity for a financial year is the sum of the instalments of levy payable for that year (section 8A). The Act revises the "Amount of instalment of levy" section, allowing the Minister to determine the amount of an instalment of levy by legislative instrument (subsections 9(1) and (2)). It also modifies the statutory limit and removes the requirement for a minimum levy amount (subsections 9(4) and (5)). The amended 2011 Act imposes specific obligations on entities subject to the Industry Contribution. Firstly, it mandates that the Minister must make at least one determination for the amount of an instalment of levy for a financial year, and the total sum of all instalments of levy must not exceed the statutory limit for that year (subsection 9(2)). Secondly, the Act requires entities to pay the Industry Contribution as determined by the Minister, ensuring that the total contributions collected do not surpass the statutory limit. Failure to comply with these obligations may result in financial penalties, enforcement actions, or other legal consequences as prescribed by the amended 2011 Act or relevant Australian legislation. The Act does not explicitly detail specific offences, penalties, or civil/criminal consequences for breach. However, non-compliance with the amended 2011 Act may result in financial penalties or other legal consequences as per the original 2011 Act or other applicable Australian laws. These potential penalties could include fines or other enforcement measures, depending on the severity of the breach and the discretion of the relevant authorities.